China Oceanwide Holdings Group will buy the 29% percent share in Legend Holdings, Lenovo's parent company, for 2.76 billion yuan, equivalent to $404 million in U.S. funds. As a result, private investors will hold a greater stake in the computer-maker, which could influence the company's business tactics, which are now focused on China and other emerging markets. Lenovo, the worlds' fourth largest PC maker, has posted net losses for the last three financial quarters.
The Chinese Academy of Sciences, a government-run institution that conducts national research projects, sold the shares, but still retains a 36% stake in Legend and is thus its largest investor. China Oceanwide was the only potential buyer who agreed to the government's terms, which include retaining company management for five years, maintaining corporate strategy and not reselling the shares. China Oceanwide also is involved in industries such as real estate, banking and energy.